Recently, I told you I was working on a special world currency report, with profit recommendations for a large basket of currencies.
The simplest way to do this is to start with the Big Five. These major currencies serve as the “drivers” for the minor ones. In my upcoming Part 2, I’ll tell you which of the minor currencies (like the Aussie dollar or the Swiss franc) are tied to which of the major ones, how that impacts their direction, and how you can profit.
Right now, we’ll start with profit recommendations for the five major currencies that drive all the rest.
The Big Five – World Currency Game Plan, Phase 1
The five currencies fueling the world economy right now are GOLD-USD-EURO-YUAN-YEN, in that order. (Gold, as I’ve written many times before, is a currency, not a commodity.) Everyone else is a minor player.
Keep in mind that no currency is an island unto itself. They do not operate in isolation. In a very long view, central banks will eventually destroy the value of paper money and gold will be the only currency left standing. Until then, some of these currencies will go up and others will go down, in an interconnected domino effect. (More on that in Part 2.)
Gold – Going Up to $4,000-$5,000 an Ounce Over the Next Several Decades
Gold is the anti-paper currency. It is insurance against the destruction of the dollar (and all other paper currencies) by central bankers. The destruction of the value of paper money is a certainty. It is as certain as death and taxes.
Since President Richard Nixon took the United States off the gold standard in the early 1970s, the U.S. dollar has lost more than 90% of its value against gold. I believe before central banks are done with their monetary experiments that are destroying the world, the U.S. dollar will lose another 90% or more of its purchasing power against gold.
U.S. Federal Reserve Chair Janet Yellen as well as European Central Bank President Mario Draghi and Bank of Japan Governor Haruhiko Kuroda have publicly stated that they want inflation to rise. That means that they want the value of paper money to fall. While official inflation statistics say that inflation is low, real-world prices are rising quickly. These central bankers are completely failing in stimulating economic growth, but they are succeeding in destroying the value of paper money.
U.S. Dollar: Going Up
Full article: World Currency Profit Game Plan – Phase 1 (Money Morning)